Ministry urges states to adopt Gujarat Model for Realty Recovery
Real Estate

Ministry urges states to adopt Gujarat Model for Realty Recovery

The Ministry of Housing & Urban Affairs (MoHUA) has issued an advisory to states, union territories, and state-specific real estate regulatory authorities (RERA), urging them to establish a recovery mechanism and appoint a recovery officer under their respective recovery laws. This directive is modelled after the approach adopted by the Gujarat Real Estate Regulatory Authority, with the primary objective of ensuring the collection of outstanding payments from defaulting real estate developers. Concerns have been raised by homebuyers regarding the non-compliance or delayed enforcement of recovery orders issued by authorities against defaulting developers.

Previously, the ministry had solicited input from six RERA authorities, including Tamil Nadu, Maharashtra, Gujarat, Uttar Pradesh, Haryana, and Karnataka, seeking suggestions to ensure the effective and timely execution of orders outlined in the Real Estate (Regulation & Development) Act, 2016.

Following this request, the ministry received feedback from real estate regulatory authorities in Tamil Nadu, Gujarat, and Maharashtra. During the second meeting of a sub-committee formed under the Central Advisory Council (CAC), the ministry announced that it has recommended all states to adopt the Gujarat model.

Abhay Upadhya, President of the Forum for People?s Collective Efforts (FPCE), a pan-India homebuyers' body, expressed optimism about the ministry's suggestion, stating that it addresses the challenges faced by homebuyers nationwide in enforcing refund orders. He emphasised that adopting the proposed model could significantly boost confidence in both the effectiveness of RERA and the real estate sector.

During the meeting, FPCE's General Secretary MS Shankar emphasised the need for RERA authorities to prioritise protecting homebuyers' interests and regulating the sector by eliminating prevalent malpractices. He also raised concerns about the lack of available data on the websites of realty authorities, such as lists of completed projects and those with completion certificates.

Manoj Joshi, Secretary of MoHUA and Chairman of the CAC sub-committee, acknowledged the data deficiency as a significant gap, revealing that none of the authorities are maintaining data adequately, as indicated in the minutes of the second meeting of the CAC sub-committee.

The FPCE highlighted its study of the Karnataka Real Estate Authority, revealing that only 25% of recovery certificates (1,212 out of 4,000 cases) had been issued, with no information available on the recovery status of these orders. On a positive note, the minutes reported that UP RERA successfully recovered over Rs 8 billion through 400 recovery certificates from projects launched in 2012, 2013, and 2014.

The Ministry of Housing & Urban Affairs (MoHUA) has issued an advisory to states, union territories, and state-specific real estate regulatory authorities (RERA), urging them to establish a recovery mechanism and appoint a recovery officer under their respective recovery laws. This directive is modelled after the approach adopted by the Gujarat Real Estate Regulatory Authority, with the primary objective of ensuring the collection of outstanding payments from defaulting real estate developers. Concerns have been raised by homebuyers regarding the non-compliance or delayed enforcement of recovery orders issued by authorities against defaulting developers. Previously, the ministry had solicited input from six RERA authorities, including Tamil Nadu, Maharashtra, Gujarat, Uttar Pradesh, Haryana, and Karnataka, seeking suggestions to ensure the effective and timely execution of orders outlined in the Real Estate (Regulation & Development) Act, 2016. Following this request, the ministry received feedback from real estate regulatory authorities in Tamil Nadu, Gujarat, and Maharashtra. During the second meeting of a sub-committee formed under the Central Advisory Council (CAC), the ministry announced that it has recommended all states to adopt the Gujarat model. Abhay Upadhya, President of the Forum for People?s Collective Efforts (FPCE), a pan-India homebuyers' body, expressed optimism about the ministry's suggestion, stating that it addresses the challenges faced by homebuyers nationwide in enforcing refund orders. He emphasised that adopting the proposed model could significantly boost confidence in both the effectiveness of RERA and the real estate sector. During the meeting, FPCE's General Secretary MS Shankar emphasised the need for RERA authorities to prioritise protecting homebuyers' interests and regulating the sector by eliminating prevalent malpractices. He also raised concerns about the lack of available data on the websites of realty authorities, such as lists of completed projects and those with completion certificates. Manoj Joshi, Secretary of MoHUA and Chairman of the CAC sub-committee, acknowledged the data deficiency as a significant gap, revealing that none of the authorities are maintaining data adequately, as indicated in the minutes of the second meeting of the CAC sub-committee. The FPCE highlighted its study of the Karnataka Real Estate Authority, revealing that only 25% of recovery certificates (1,212 out of 4,000 cases) had been issued, with no information available on the recovery status of these orders. On a positive note, the minutes reported that UP RERA successfully recovered over Rs 8 billion through 400 recovery certificates from projects launched in 2012, 2013, and 2014.

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement